countryaah, Monaco's economy is not comparable to any other country
in Europe. In a country without income and wealth tax
(French and American citizens living in Monaco have to pay
taxes in their home countries) and with a large proportion
of income from abroad it is difficult to make a fair
estimate of national income.
Tourism is the traditional main industry. The service
industries account for 84 percent of employment and the
industry 16 percent. The industry consists of companies
mainly in the chemical, fine mechanics and plastics
industries. Monaco is also an important banking and
financial center with about 40 banks.
The state has a strictly balanced budget. Its revenue is
covered by just over half of VAT and at 4 percent of
gambling. The rest comes mainly from corporate taxation
(about 1/3), state monopoly on eg. tobacco, telephone and
stamps, concessions for the casino and Radio Monte Carlo and
customs. The state is the principal owner of SBM (Société
des Bains de Mers et du Cercle des Étrangers à Monaco),
which is Monaco's largest company with 2,600 employees and
which, in addition to the casino, runs hotels, restaurants,
opera etc. SBM is also behind many events, such as Monte
Carlo Rally and Monaco Grand Prix.
About 2/3 of foreign trade is done with France. Exports
mainly consist of cosmetics, pharmaceuticals, electronics,
plastics and anchovy preservatives. The trade deficit is
significant, which is probably offset by the currency inflow
of tourists and residents.